Cenveo, Inc. (NYSE: CVO) operates as a diversified printing company in the United States and internationally. The company operates in two segments, Envelopes and Labels, and Commercial Printing.
On January 18, 2013, Cenveo Corporation, a wholly-owned subsidiary of Cenveo, Inc., entered into an unsecured credit agreement with Cenveo, as a guarantor, Macquarie US Trading LLC, as administrative agent, and the lenders named therein, which provides for an unsecured $50,000,000 aggregate principal amount term loan due March 31, 2017.
Proceeds from the Unsecured Term Loan together with available cash and borrowings on its secured revolving credit facility were used to redeem, satisfy and discharge in full the Company’s 7.875% senior subordinated notes due 2013, and to pay certain fees and expenses incurred in connection with the Unsecured Credit Agreement and the redemption, satisfaction and discharge of the 7.875% Notes.
The Unsecured Term Loan will bear interest at a rate of 15% per annum, payable quarterly in arrears on the 25th day of each February, May, August and November prior to the maturity of the Unsecured Term Loan and on the maturity date of the Unsecured Term Loan. If the Company does not pay in full a quarterly excess cash flow mandatory prepayment pursuant to the terms of the Unsecured Credit Agreement, interest on the outstanding principal amount of the Unsecured Term Loan will instead accrue at 25% per annum until the first prepayment date thereafter when the full excess cash flow mandatory prepayment is made by the Company.
The obligations of the Company under the Unsecured Credit Agreement are guaranteed by Cenveo and each existing and future direct and indirect domestic subsidiary of Cenveo on an unsecured basis pursuant to the Guaranty.
Cenveo deposited $68,604,929.25 with U.S. Bank National Association on January 18th , using the proceeds from the Unsecured Term Loan, plus available cash and borrowings under its secured revolving credit facility, the trustee for the 7.875% Notes, to be applied toward the redemption of the 7.875% Notes on January 22, 2013 and to satisfy and discharge the Company’s obligations under the Indenture, dated as of February 4, 2004, among the Company, the guarantors named therein, and the Trustee on January 18, 2013.